Office of the Historian

103. Memorandum From the Executive Secretary of the Department of State (Bremer) to the President’s Assistant for National Security Affairs (Allen)1

Washington, February 17, 1981

SUBJECT

  • Algerian Liquified Natural Gas

The seventh round of Algerian-US discussions on a government-to-government framework for the resumption of the import of Algerian liquified natural gas (LNG) into the U.S. under the El Paso Algeria LNG project will take place in Algiers February 17–18.2 Attached are copies of the letter cabled to the Algerians outlining our [Page 228] position,3 and the draft of a possible joint announcement4 which would embody the US-Algerian understanding on these LNG imports if agreement is reached.

This will probably be the last round of US-Algerian talks on this project, in view of the El Paso Company’s financial deadlines. Since the two sides are at this point still far apart, it is quite possible that the talks may not be successful. We do not have a great deal of give in our position because of the possible impact on Canadian and Mexican border prices, and because of regulatory considerations.

On the political side, we have tried to insulate the possible demise of the El Paso project from having any effect on political relations with Algeria, through discussions with the Algerian Ambassador and with the Foreign Ministry in Algiers.5

L. Paul Bremer, III
Executive Secretary
  1. Source: Reagan Library, Executive Secretariat, NSC Country File, Africa, Algeria (01/22/1981–01/22/1982). Confidential.↩
  2. In telegram 38673 to Algiers, February 14, the Department transmitted talking points for the Embassy to use when presenting the letter to the Algerians. The United States wanted the GOA to understand that it was “taking this step of conveying a revised U.S. position in the interest of expediting the upcoming round of talks. Time is short, and we want to do everything possible to give these negotiations a maximum chance to succeed,” and hoped that “the GOA appreciates the high priority which the administration has accorded this problem.” (Department of State, Central Foreign Policy File, Electronic Telegrams, D810071–0172)↩
  3. In telegram 712 from Algiers, February 18, the Embassy reported that the LNG discussions “showed that fundamental differences continue to exist” between the United States and Algeria over the price of LNG. Given the disagreement, the two sides “agreed to end the seventh round of government-to-government discussions without any plans to meet again” unless “either side came up with something new.” (Department of State, Central Foreign Policy File, Electronic Telegrams, D810076–1107)↩
  4. Not attached. See Document 102.↩
  5. Not found.↩